...transactions of a business entity in a chronological order. Accounting Accounting is the process of recording, classifying, reporting, analysing, interpreting and communicating of financial information to the stake holders. Accounting is the combination of all the 6 fields while bookkeeping is only a part of the accounting process. Double Entry System According to this system, every business transaction has a two-fold effect and that it affects two accounts in opposite directions. One of the two aspects is the benefit receiving aspect or “incoming aspect” (termed as Debit) and the other is the benefit giving aspect or “outgoing aspect” (termed as Credit). For every transaction, one account is to be debited and another account is to be credited in order to have a complete record of the transaction. The basic principle under this system is that for every debit, there must be a corresponding and equal credit and for every credit there must be a corresponding and equal debit. Following this principle, the arithmetical accuracy of the accounts can be checked by preparing a Trial Balance, where the total of Debits and Credits should tally. It is a scientific system maintaining a complete record of transactions which helps in the ascertainment of profit/loss and financial positionof the business while maintaining the accuracy of accounts Accounting Cycle The entire accounting cycle is based on the double entry system. Once a transaction occurs, it is recorded in the form of a...
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...Bookkeeping and Accounts (City & Guilds Level 2) Course Content: At the end of the course candidates should be able to to do the following at Level 2: * Ledger Accounting: Post ledger transactions, total and balance accounts, bringing down balances: sales ledger; purchase ledger; general ledger. * Control Accounts: Prepare and reconcile control accounts with individual ledger account balances in subsidiary ledgers for: sales ledger control account; purchase ledger control account. * Correction of errors: Identify different types of errors in ledger accounts: incorrect double entries, missing entries, numerical inconsistencies, incorrect calculations. Make appropriate adjustments in the Journal and the respective ledger accounts. Create and clear a suspense account where necessary. * Accounting for capital expenditure and depreciation: Distinguish between capital and revenue expenditure; Record depreciation using: straight line method, reducing balance method. Prepare accounts for depreciation and provision for depreciation. * Year end adjustments: Write off bad debts; Create and increase/reduce the provision for doubtful debts account; Account for accruals and prepayments in ledger accounts; Make appropriate adjustments in the journal; Prepare a trial balance from cash book and ledger balances; Prepare a revised trial balance from one initially drafted incorrectly. * Extended trial balance: Complete an extended trial balance making adjustments...
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...Over the last 500 years, the double-entry system of accounting has provided the accounting profession with a reliable and accurate way of tracking the economic events of companies. However, with the implementation of computer-based accounting systems over the last few decades, event based accounting has gained popularity. The theory behind event based accounting is that each business transaction can be broken down into one, or a combination of three types of events: economic, business, and information. An economic event is one in which the quantity of resources change, such as selling an item or purchasing a service. Events like receiving an invoice from a supplier, or sending out a purchase order to a vendor are examples of business events. They are necessary to the company even though they are not the monetary or physical transactions for goods or services. Tasks like creating reports and inputting new customers are considered information events. Information events provide the necessary data for the economic or business events that transpire. The double-entry system of accounting focuses on taking those separate events and aggregating them into journal entries. By aggregating them, a great deal of the total information of the event is left out. Under an event based accounting system each event is recorded with as much of the information as possible, and then stored in tables of data that allow the user to recall and compile this information into usable reports. This...
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...solely by self-interest but may differ with respect to preferences, beliefs and information (Jensen and Meckling, 1976). The principal/agent relationship can exist throughout any organisation and usually starts from the shareholder-director and ends with the supervisor-shop floor worker (Figure 1.1). In an organisation context, which involves uncertainty and asymmetric information, the agent’s actions may not always be directed to the best interests of the principal. Agents’ pursuit of their self-interest instead of those of the principal is what is called the agency problem (Jensen and Meckling, 1976). To counter this behaviour, the principal may monitor the agents’ performance through an accounting information system. The owner can also limit such aberrant behaviour by incurring auditing, accounting and monitoring costs and by establishing, also at a cost, an appropriate incentive scheme (Jensen and Meckling, 1976). According to Jensen (1998), agency theory seeks to understand: (1) how to assign decision making responsibility to agents, (2) how to monitor agents’ behaviour, and (3) how to design incentives that cause agents to behave in a way that enhances the principal’s interests. Agency theory is built around the key ideas of self-interest, adverse selection, moral hazard, signalling, incentives, information asymmetry and most persuasively, the contract. Figure 1.1: The principal agent...
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...Accounting Information System Requirements XACC/210 The requirements for developing an accounting information system are not unlike the design of an IT system. There are specific steps to adhere to in order to have a successful outcome. 1. Planning and investigation- It is important to determine what is required by each individual company in order to be successful. A company cannot skip this step and jump into a new system. The outcome would surely fail. 2. Analysis- It is important to take a broader view of current systems to determine what is working and what parts of the system need to change in order to be successful. 3. Design- After step one and two have been achieved, designing the new accounting system is the next logical step in order to realize the company vision. 4. Implementation, maintenance, and follow-up- Next, the company will try the new system out, make the necessary adjustments as time goes by, and ensure that things are working as they were designed to work. The accountant’s role in this process is to advise the company what elements are needed to have an accounting system that will allow them to effectively bring the needed information to the company that is needs in order to maintain a profitable business. They know what type of programs that are effective for general accounting purposes, spreadsheets etc. This knowledge and advice an accountant gives is a vital part of the planning and investigation an organization needs to...
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...Suggested topics for discussions are provided for each question. Discussion need not be confined to the topics indicated. 1. In figure 5.1, the accounting cycle is illustrated. Explain the purpose and importance of each step in the cycle. Step 1 of the accounting cycle is to capture the data from every transaction involving the entity in the form of source documents, which may take many different formats. For example, source documents can consist of sales or service invoices, cash dockets, credit card slips, purchase invoices, delivery notes, credit notes, computerised cash register tapes, EFTPOS records. Step 1 is important in that it is the chief means of collecting data about the economic activities of the entity, which then must be recorded in the accounting system. The step provides a vital first stage in developing an audit trail for auditors to assess the effectiveness of control procedures in the accounting information system. Step 2 records (enters), in journals, all of the transactions about the entity from source documents developed in Step 1. This is usually done as a double entry process. The journals are important in that they provide a chronological record of the economic transactions and events that affect the entity. Step 3 posts all of the information from the journals into the entity’s ledger accounts. In so doing, financial information is reclassified into items of a like nature, i.e. into different types of assets, liabilities and equity...
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...store, is expanding. The company should ensure an effective and efficient accounting information system is installed enabling continued growth. An accounting information system (AIS) involves six main components. The components are people, procedures and instructions, data, software, information technology infrastructure, and internal controls (Kte’pi, 2009). The role of information systems in business is to support business processes, decision making, and competitive advantage (O’Brien & Marakas, 2008). Kudler has an AIS in place that has been examined to help determine if the system provides these roles and helps meet the company’s needs. Recognizing the key business and accounting operation needs are important when developing and upgrading an AIS. An examination of Kudler’s AIS revealed that even though software programs are currently in use, an all-encompassing, seamless, secure accounting information system will provide better inventory tracking and streamlined purchasing methods, help with the integration of e-commerce, and help provide a higher level of customer service. Key business and accounting operation needs There are key business and accounting operation needs specific to the business of Kudler Fine Foods. The tracking of inventory and efficient purchasing methods are important for accounting operations, as well as customer service. An effective, accurate inventory tracking system allows management to determine popular items that sell quickly, when items...
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...EXECUTIVE SUMMARY This report is a suggestion of which accounting technique should to be integrated into BHP Billiton’s contemporary management accounting system. Through in depth research this technique has been identified as the environmental management accounting technique. This result was achieved through the research of the strengths, weaknesses, opportunities and threats (SWOT) analysis and the identification of the critical success factors. A balanced score card was then created using the information gathered to be used in identifying the most relevant technique. EMA was the technique decided upon as compared to the other techniques as it is the most relevant to BHP Billiton as their industry deals day to day with the environment and society. It will create awareness for the harm that is being done to the environment and will encourage them to create the minimum damage to the earth. It will also assess any repercussions of their actions that may affect society and bring harm to people. By integrating the EMA technique, it will help the organisation to collect the most relevant information to their situation and will assist in the planning, controlling and decision making within that organisation. This will improve the organisations strategy in which to help preserve the environment and also affect their financial state positively. TABLE OF CONTENTS EXECUTIVE SUMMARY 3 TABLE OF CONTENTS 3 1. INTRODUCTION 5 2. BHP BILLITON LTD 5 ...
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...Accounting Cycle Description Paper Team A ACC/340 Accounting Cycle Description Paper The payroll processing cycle is very time consuming and tedious when done manually. Therefore, the ‘Mom and Pop’s Grocery Store’ has elected to integrate its payroll with a computer software program. With this implementation the payroll process will be more efficient and effective. This paper will explain how the payroll processing cycle for ‘Mom and Pop’s Grocery Store’ integrates onto an enterprise-wide accounting information system. An enterprise-wide accounting information system “focuses on the business process of the organization as a whole” (Bagranoff, Simkin, & Stand, 2008, p. 7). Business process reengineering (BPR) is a total re-design of processes used by an organization that are no longer effective or efficient (Braganoff et al, 2008, p. 163). The ‘Mom and Pop’s Grocery Store’ will use BPR to update the old payroll process to the new enterprise-wide AIS system. The Accounting Information System (ASI) is a system that is put in place for a company to maintain its accounting system. The input devices commonly associated with AIS systems include: “standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce” (Business Glossary, p. 1, 2005, 2000, 1995, 1987). In addition, many financial systems come with Internet settings...
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...Course Accounting Information Systems http://homeworkfy.com/downloads/acc-564-entire-course-accounting-information-systems/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) ACC 564 Week 2 Assignment 1 – Information Needs for the AIS In 1967, Russell Ackoff presented a classical analysis of misinformation in management (Ackoff’s Management Misinformation Systems, Case 1-1, pg. 21 of the text). Now, you need to fast-forward to the present. After reading the case, craft your own version of misinformation in management by developing five (5) key incorrect assumptions that management makes about its accounting information systems. For this assignment, research the Internet or Strayer databases for information related to improper assumptions concerning accounting information systems. Write a five to seven (5-7) page paper in which you: Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems and the related information. Indicate the most negative potential impacts on business operations related to these assumptions. Provide support for your rationale. Suggest three to four (3-4) ways in which organizational performance may be improved when information is properly managed within a business system. Provide support for your rationale. Evaluate the level of system security...
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...Course Accounting Information Systems http://homeworkfy.com/downloads/acc-564-entire-course-accounting-information-systems/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) ACC 564 Week 2 Assignment 1 – Information Needs for the AIS In 1967, Russell Ackoff presented a classical analysis of misinformation in management (Ackoff’s Management Misinformation Systems, Case 1-1, pg. 21 of the text). Now, you need to fast-forward to the present. After reading the case, craft your own version of misinformation in management by developing five (5) key incorrect assumptions that management makes about its accounting information systems. For this assignment, research the Internet or Strayer databases for information related to improper assumptions concerning accounting information systems. Write a five to seven (5-7) page paper in which you: Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems and the related information. Indicate the most negative potential impacts on business operations related to these assumptions. Provide support for your rationale. Suggest three to four (3-4) ways in which organizational performance may be improved when information is properly managed within a business system. Provide support for your rationale. Evaluate the level of system security...
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...INTERNSHIP REPORT ON ACCOUNTING INFORMATIONSYSTEM OF REAL ESTATE BUSINESS IN BANGLADESH”-AN EMPIRICAL STUDY OF [pic] PREPARED FOR Farzana Afrin Internship Supervisor & Lecturer Dept. of Business Studies Stamford University Bangladesh. PREPARED BY Mahmood Hossain Id: 02707400 Section: 27(Q) Date: LATTER OF TRANSMITTAL April Ms Farzana Afrin Lecturer Stamford University Dhanmondi, Dhaka Dear Madam, I feel myself fortunate enough for having the scope to conclude the study on “The Accounting information System of Real Estate Business in Bangladesh”-An Empirical study of Building For Future Ltd, Which you assigned me to do as a part of the study. Obviously, this type of practical work made me acquainted with “Real Estate Finance” in real life situation. Here, I can’t deny the help that I got from the staff of Building For Future Ltd. who ensured me a full congenial atmosphere to access over a plenty of information with relevant papers and a practical survey. I am thankful to them for showing their highest degree of tolerance in answering my inexorable questions, sometimes repeated. I would enthusiastically provide you related information depending on your queries. The report was prepared under your able leadership and I do respectfully appreciate guidance to me to learn about...
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...Computer Information System Brief Tina Monteverdi Accounting Information Systems ACC/542 July 15, 2013 Milan Havel Computer Information System Brief Kudler Fine Foods prides their selves on providing an upscale environment with all of the very best domestic and imported foods and wines. They have an experienced and knowledgeable staff that is able to assist customers. The founder, Kathy Kudler developed a business plan and obtained a financing and was able to open a store all within a six month time a turn that business into a profitable business in the first year. Over the next five years 2 more stores were opened and continuing to thrive. In order to continue growing Kudler’s is evaluating their accounting information system needs and determine if there are changes that can be made to improve their systems with either system changes or technology upgrades, as well as identify an potential technology threats that may need to be addressed. Identify Kudler’s Key business and Accounting Information Needs Kathy Kudler and her management team understand the benefits of a system that would meet the needs of this business and help to continue to thrive. Kudler’s computer system will be used to integrate their point of sale (POS) systems along with their asset management and accounting, accounts payable modules, general ledger, bank reconciliations, and lastly one of the most important systems the security systems. “The initial business plan for Kudler’s included...
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...HI5019 Strategic Information Systems for Business and Enterpise (T1, 2013) Assignment (20% of Final Mark) The assignment has two parts namely Part A (20 marks) & B (20 marks). Part A will require you to answer four (4) questions. Part B will involve two (2) cases selected form you textbook, Accounting Information Systems 8th edition by James A. Hall. The assignment aims to develop an understanding of Accounting Information Systems structure and their use in the business setting. The task is to answer questions relating to transaction processing, ethics, fraud and internal control. This assignment itself includes several assignments, each of which comprises a part of the students’ task. However, it is well encouraged to include any additional information that students may think will be useful in completing the task. General Rules and Requirements: Reports must be confined to 3,000 words (+/- 5%). As a minimum, a title page, table of contents page (based on your report headings), introduction, conclusion and references should be included. Font type should be Arial (size 11), paragraph spacing should be 1.5. Note: Any additional material from external sources that you “copy and paste” into your report is NOT included in the word limit. Also, ensure it is appropriately referenced. PART A (20 marks) 1. How does SOX affect the provision of attest and advisory services? (5 marks) 2. Compare and contrast the relative advantages and disadvantages of sequential, block,...
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...Accounting System Rosemarie Blakley BSA/310 April 28, 2013 Anastasia Jakubow Accounting System Although Kudler Fine Foods currently has an accounting system that they are using that seems to be adequate, the goal in the future is for the organization to continue to grow, and along with this growth is going to come the need for a more comprehensive system that can support their growing changes. We all know that proper accounting practices are one of the most important things in any business, and Kudler is no exception. After careful review of different accounting software that is out there on the market today, I personally think that QuickBooks by Intuit would be a logical solution to their growing needs. Key Features: The key features for this new accounting system should include all of the things that are necessary for the growth of a smaller enterprise. The software should be able to keep track of all of the company’s financial transactions. It should be a financial accounting and reporting system all in one. The software should also have the capability to record all of their transactions as well as report all of the operating data at the end of each quarter or month, whichever the organization prefers, and it also needs to help analyze all of their financial data. QuickBooks accounting software does well to allow for journal entries by debiting and crediting the financial accounts, such as liabilities, assets, revenues, and expenses. Kudler can even use this software...
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